Peregrine's 4Q Loss In Line - Analyst Blog

Top Information Technology Stocks To Invest In Right Now

Peregrine Pharmaceuticals, Inc. (PPHM) reported a net loss of 6 cents per share in the fourth quarter of fiscal 2013 (ended Apr 30, 2013), in line with the Zacks Consensus Estimate. The fourth quarter loss was however narrower than the year-ago loss of 10 cents. The narrower year-over-year loss was primarily due to higher revenues.

Peregrine Pharma's adjusted net loss for fiscal year 2013 of 23 cents per share was wider than the Zacks Consensus Estimate of a loss of 22 cents but narrower than the year-ago loss of 50 cents. Revenues for the year increased 42.3% to $21.7 million, beating the Zacks Consensus Estimate of $20 million.

Avid Bioservices, a Peregrine Pharma subsidiary, posted a 44% increase in revenues to $21.3 million in fiscal 2013, the highest reported amount in Avid's history.

Quarter in Details

Fourth quarter fiscal 2013 revenues of Peregrine Pharma increased 106% to $4.6 million, edging past the Zacks Consensus Estimate of $4 million. The top-line increase was mainly due to the rise in contract manufacturing revenue.

Avid Bioservices posted contract manufacturing revenues of $4.2 million during the quarter. For fiscal 2014, Peregrine expects contract manufacturing revenue in the range of $18−$22 million.

Peregrine Pharma's total costs and expenses decreased 1.8% during the fourth quarter of fiscal 2013 to $12.7 million. Although research and development expenses decreased 34.7% to $5.8 million, selling, general and administrative expenses were up 18.6% to $3.7 million.

Peregrine Pharma's lead pipeline candidate, bavituximab, is being developed for multiple oncology indications including the treatment of second-line non-small cell lung cancer (NSCLC). Peregrine expects to initiate a phase III study on the candidate for this indication by the end of calendar ! 2013.

Earlier in the year, the company entered into an agreement with the US Food and Drug Administration (FDA) to design a phase III trial of bavituximab in second-line NSCLC. The phase III randomized, double-blind placebo-controlled study (n=600) will be evaluating the combination of bavituximab and Sanofi's (SNY) Taxotere (docetaxel) in comparison to Taxotere and placebo.

Overall survival is the primary endpoint of the study. We expect that investor focus will remain on the development path of bavituximab.

Peregrine, a biopharmaceutical company, currently carries a Zacks Rank #1 (Strong Buy). Biopharma companies, such as Jazz Pharmaceuticals (JAZZ), and Alnylam Pharmaceuticals, Inc. (ALNY) look equally attractive.

5 Rocket Stocks Set to Rally

BALTIMORE (Stockpickr) -- The tail end of earnings season is in full swing this week, as another set of firms gear up to report their numbers to investors. When it comes to the opportunity for big stock moves, there's nothing quite like earnings season.

Earnings are a big deal; they're one of just four fundamental updates that investors get access to each year. So it's not surprising that earnings calls can inject some serious volatility into the broad market.

That's exactly what we're seeing this month: strong overall earnings numbers are sent the S&P 500 breaking out to new all-time highs above 1,700 last week, an important move from a technical standpoint. With a new high-water mark in equities, it's worth taking a look at five Rocket Stock names worth trading this week.

For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 210 weeks, our weekly list of five plays has outperformed the S&P 500 by 82.1%.

Without further ado, here's a look at this week's Rocket Stocks.

LinkedIn

LinkedIn (LNKD) saw some strong performance last week, jumping more than 13% on the heels of -- you guessed it -- strong earnings. In many ways, LinkedIn is Wall Street's favorite social media stock; since going public, LNKD has rallied more than 150%, while the giant in the space, Facebook (FB) has barely broken even.

Hot Wireless Telecom Stocks To Invest In Right Now

That favorite status is for good reason: LinkedIn is the social network that actually makes money by helping its users do what they were trying to do when they logged in. While other social media firms earn revenue by distracting their users from what they're trying to do (and getting them to click on ads while stalking their friends, for instance), LNKD makes money by helping users with the exact task they're trying to accomplish: find a job, network or hire someone. That seems like a small distinction, but it's core to LinkedIn's ability to maximize the money it makes off of each user.

None of that is the same as saying that LinkedIn is a bargain -- it's not. The firm trades for an exaggerated multiple right now in spite of its spotless balance sheet. But that's not likely to put a hamper on LinkedIn's price action this summer, at least while the broad market remains in rally mode. That's why we're betting on shares of this Rocket Stock this week.

Sirius XM Radio

2013 has been a strong year for Sirius XM Radio (SIRI) -- the satellite radio company has seen its shares rally more than 30% since the calendar flipped over to January, more than doubling the S&P's ascent year-to-date. Sirius XM provides subscription-based radio coverage to more than 25 million subscribers in the U.S. and Canada. Beyond satellite, Sirius has made big investments in its online platform of late, adding options like on demand programming to the mix.

The breakneck growth of auto sales in 2013 is trickling down to SIRI's income statement. With satellite radio transmitters installed in more than two-thirds of new cars sold today, the firm has a captive audience that's excited to play with the features of their latest big purchases, including free trials to SIRI's services. As a result, the firm converts close to half of those trial users into paying subscribers. Size matters in the content business, and Sirius XM's scale means that the firm can afford to pay for exclusive names and pricey content partnerships for sports and music.

Even though rivals like Pandora (P) are competing to grab consumers' drive-time attention (and dollars), SIRI's dominant integration and superior service coverage gives it a major advantage in the shootout.

Intel

Intel (INTC) is the 800-pound gorilla in the semiconductor business. The firm owns around 80% of the microprocessor market, giving it a major edge over smaller rivals like Advanced Micro Devices (AMD). Since Intel is inside more new PCs rolling off assembly lines today, it's able to incentivize developers to make the most out of its chip architecture. That, in turn, creates a positive feedback loop that secures Intel's moat.

The downside to Intel's dominant share of the market is growth. When you own 80% of a market, grabbing that remaining 20% becomes a battle of diminishing returns. Instead, Intel is targeting new markets like mobile with its Atom chips. It's also leveraging its $17 billion cash position to invest in R&D, a fact that's helped make Intel one of the few firms in the PC food chain that still earns double-digit net profit margins.

Another big use of cash for Intel in recent years has been dividends. With a 3.9% dividend yield at current price levels, Intel is consistently one of the highest-yielding names in the technology sector. With rising analyst sentiment in shares this week, we're betting on shares.

Ford Motor

Even if Ford Motor (F) gleaming best-in-breed status among Detroit automakers has worn off, the firm still looks stellar in 2013. Just five years ago, the difference between Ford and its peers was a little more stark; after all, Ford was the only one of the big three to actually avoid bankruptcy in the wake of the Great Recession. But maybe more startling has been Ford's transition to making really good cars again.

In the 1990s and 2000s, Detroit became a punch line for failing to build cars that consumers actually wanted. No more. A complete revamp across Ford's lineup has left the firm with solid reviews from auto journalists as well as customer rankings that landed the firm in the coveted top tier for initial quality. And now, with interest rates scraping along historic lows, the barriers to getting into a new car have dropped dramatically for many consumers. Ford's revamp may have been late, but it's certainly better than never.

Europe has been a big black cloud for Ford in 2013. While the firm has executed extremely well in the high volume car market here in North America, an ongoing economic crisis in the Eurozone (where Ford earns around 20% of sales) has weighed on performance. Now that the EU is showing signs of turning the corner, releasing that earnings drag could be a big catalyst this year.

Micron Technology

Last, but certainly not least, is Micron Technology (MU), a name that's consistently been one of the hottest momentum movers of 2013.

Micron is a computer memory maker that until recently was best known for manufacturing RAM for PCs. But the company has spent the last several years building its flash memory business, a switch that exposes Micron to a far more lucrative niche. That's because the push toward mobile devices in recent years has boosted demand for NAND flash memory, tightening supplies and spiking prices. These solid-state drives are capable of more speed and capacity for a given footprint than traditional magnetic media, and their premium pricing also produces deeper margins for Micron.

The firm's OEM connections are a big advantage because they keep sales efforts minimal. Instead, the firm just needs to keep creating flash technology that device makers want. The increasing use of flash memory in enterprise settings (such as servers) is another big trend that's helped to propel Micron's share price in 2013. As cloud storage gets used by more and more consumers, a rising tide should lift all ships in the computer storage business.

With rising analyst sentiment boosting shares this week, we're betting on this Rocket Stock.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

Hot Railroad Companies To Invest In Right Now

2013 was a strong year for railroad stocks: the iShares Transportation ETF (NYSE: IYT), about the closest you can get to a gauge for the industry (roughly 30% of the fund’s portfolio is devoted to railway operators) gained 39% during the year.

That’s miles ahead of the Dow Jones Industrials (up 26%) and the S&P 500 (up 29%).

Railroad Stocks in a Downhill Pull

Railroads currently carry the largest portion of the nation’s freight—about 43%—ahead of trucks, at 31%. According to a recent report from RBC Capital Markets, the industry has another year of full railcars ahead.

RBC’s 2014 Railroad Shipper Survey queried 53 customers of the six North American Class 1 railroads (or those with operating revenues of $433.2 million or more) to gauge their expectations for the year ahead. The picture that emerged is one of an industry enjoying a period of sustained growth.

Hot Railroad Companies To Invest In Right Now: Industrias Bachoco S.A. de C.V. (IBA)

Industrias Bachoco, S.A.B. de C.V., through its subsidiaries, operates as a poultry producer in Mexico. It engages in breeding, processing, and marketing of poultry products, such as chicken and table eggs; and balanced animal feed comprising swine and other products. The company also offers turkey and value-added beef and pork products. It sells its products to wholesalers, retailers, supermarkets, rosticer Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Industrias Bachoco (NYSE: IBA  ) , whose recent revenue and earnings are plotted below.

• [By John Udovich]

  Thanksgiving is around the corner�meaning investors might want to take a closer look at turkey stocks�like Hormel Foods Corporation (NYSE: HRL), Seaboard Corporation (NYSEMKT: SEB) and Industrias Bachoco, S.A.B. de C.V. (NYSE: IBA)���the last major�publicly traded turkey stocks available for investors. Moreover, the Wall Street Journal has pointed out that corn prices are the lowest in more than three years and fewer birds are in production as some producers cut back on their flocks this year due to weaker turkey commodity prices.�Feed prices, which make up about 70% of the cost of a turkey, had soared with the price of corn which hit the $8 a bushel level but a recent�bumper crop has sent corn prices plunging to about the $4 a bushel level.

Hot Railroad Companies To Invest In Right Now: IBERIABANK Corporation (IBKC)

IBERIABANK Corporation operates as the holding company for IBERIABANK that provides commercial and retail banking products and services in the United States. It offers a range of commercial, consumer, mortgage, and private banking products and services; cash management services; deposit and annuity products; and investment brokerage services. The company, through its subsidiaries, also engages in financial services-related activities, including brokerage services and sales of variable annuities, life, health, dental, and accident insurance products. In addition, it offers various title insurance and loan closing services for residential and commercial customers; family residential mortgage loans; equity research, institutional sales and trading, and corporate finance services; and wealth management and trust services to high net worth individuals, pension funds, corporations, and trusts, as well as invests in an aircraft and purchased tax credits. As of February 25, 2013, the company had 278 combined offices, including 184 bank branch offices in Louisiana, Arkansas, Florida, Alabama, Tennessee, and Texas; 21 title insurance offices in Arkansas and Louisiana; and mortgage representatives in 62 locations in 12 states. IBERIABANK Corporation was founded in 1887 and is headquartered in Lafayette, Louisiana.

Advisors' Opinion:

• [By Dividends4Life]

  Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
  
  1. Avg. High Yield Price
  2. 20-Year DCF Price
  3. Avg. P/E Price
  4. Graham Number
  
  CTBI is trading at a premium to all four valuations above. The stock is trading at a 53.5% premium to its calculated fair value of $29.43. CTBI did not earn any Stars in this section.
  
  Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
  
  1. Free Cash Flow Payout
  2. Debt To Total Capital
  3. Key Metrics
  4. Dividend Growth Rate
  5. Years of Div. Growth
  6. Rolling 4-yr Div. > 15%
  
  CTBI earned one Star in this section for 1.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The company has paid a cash dividend to shareholders every year since 1988 and has increased its dividend payments for 33 consecutive years.
  
  Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
  
  1. NPV MMA Diff.
  2. Years to > MMA
  
  The negative NPV MMA Diff. means that on a NPV basis the dividend earnings from an investment in CTBI would be less than a similar amount invested in MMA earning a 20-year average rate of 3.41%. If CTBI grows its dividend at 1.5% per year, it will never equal a MMA yielding an estimated 20-year average rate of 3.41%.
  
  Memberships and Peers: CTBI is, a member of the Broad Dividend Achieve

Top 10 India Stocks To Watch Right Now: Gilead Sciences Inc.(GILD)

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Atripla, Truvada, Viread, Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa for the treatment of chronic angina; Vistide, an antiviral medication for the treatment of cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The company?s products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular a ge-related macular degeneration; and Lexiscan/Rapiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Its products under the Phase III clinical trials consist of Cobicistat, a pharmacoenhancer that is under evaluation as a boosting agent for HIV medicines; Elvitegravir, an oral integrase inhibitor being evaluated as part of combination therapy for HIV; Integrase Single-Tablet, a ?Quad? regimen of elvitegravir, cobicistat, tenofovir disoproxil fumarate, and emtricitabine for the treatment of HIV/AIDS in treatment-naive patients; and Aztreonam for inhalation solution for the treatment of cystic fibrosis patients with Pseudomonas aeruginosa. The company?s Phase II clinical trials products comprise Cicletanine, Ranolazine, and Aztreonam, as well as GS 9190, GS 9256, and GS 9451. Its Phase I clinical trial products include GS 7340, GS 5885, GS 6620, GS 9620, and GS 6624. The company was founded in 1987 and is headquartered in Fost er City, California.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Intercept Pharmaceuticals have dropped 8.3% to $295, lagging the 3.3% drop in the iShares Nasdaq Biotechnology ETF (IBB) and the 4.7% decline in the SPDR S&P Biotech ETF (XBI). Gilead Sciences (GILD) has fallen 2.1% to $72.44 and Amgen (AMGN) is off just 1.8% at $121.88.

Hot Railroad Companies To Invest In Right Now: BHP Billiton Limited(BHP)

BHP Billiton Limited, together with its subsidiaries, operates as a diversified natural resources company worldwide. The company engages in the exploration, development, and production of oil and gas; mining and refining of bauxite into alumina, and smelting of alumina into aluminum metal; and mining of copper, silver, lead, zinc, molybdenum, uranium, gold, diamonds, and titanium minerals, as well as development of potash deposits. It also involves in the mining and production of nickel products, manganese ore, and manganese metal and alloys, as well as in the mining of iron ore, metallurgical coal, and thermal coal. BHP Billiton Limited sells its copper, lead, and zinc concentrates, and alumina to smelters; copper cathodes to wire rod mills, brass mills, and casting plants; uranium oxide to electricity generating utilities; rough diamonds to diamond buyers and diamond manufacturers; nickel products to stainless steel, specialty alloy, foundry, chemicals, and refractory ma terial industries; metallurgical coal to steel producers; and energy coal to power stations, power generators, and industrial users. The company, formerly known as BHP Limited, was founded in 1885 and is headquartered in Melbourne, Australia.

Advisors' Opinion:

• [By Alex Planes]

  Billiton's beginnings
  Tin was first discovered on the Sumatran island of Billiton (Belitung�) on June 28, 1851. Nine years later, a company of the same name was formed in the Netherlands to exploit the resource-rich island. For over a century, Billiton dominated the mining industry of the Indonesian archipelago, and eventually would expand its reach and business range throughout the world. Billiton�merged with Australian metals leader BHP (Broken Hill Proprietary) in 2001 to form BHP Billiton (NYSE: BHP  ) (NYSE: BBL  ) , which is now the largest mining company in the world.

• [By GuruFocus]

  This screen generates 37 stocks in the U.S. market as of today. The largest companies among the list are BHP Billiton (BHP) (BBL), Intel (INTC), China Petroleum & Chemical (SNP) and Royal Bank of Canada (RY).

• [By Tyler Crowe]

  Right now, there are several Australian assets up for grabs because mining giants Rio Tinto (NYSE: RIO  ) and BHP Billiton (NYSE: BHP  ) are both looking to shed their coal assets. This could be an opportune time for a company like Peabody to strengthen its international presence or a competitor like Alpha Natural Resources to trade up from its Central Appalachian assets and expand outside the U.S.�

• [By Taylor Muckerman and Joel South]

  The largest miners in the world haven't been insulated from this either. BHP Billiton (NYSE: BHP  ) will be attempting to reduce expenditures by $4 billion within the next 12 months. This cut will be larger than the entire 4% market cap of the S&P 500 index. And�that's in just one year!�These measures, while drastic, should help realign the supply and demand balance leading to improved inventory management and pricing power for the miners mentioned in the video below.

Hot Railroad Companies To Invest In Right Now: Powershares Dynamic Networking Portfolio (PXQ)

PowerShares Dynamic Networking Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Networking Intellidex Index (the Networking Intellidex). The Networking Intellidex consists of stocks of 30 United States networking companies. These are companies that are principally engaged in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions. These companies may include providers of telecommunications and networking equipment, data storage, systems software, Internet hardware, including servers, routers, switches and related equipment, systems for data encryption and security, Internet services, including hosting and commercial exchanges, fiber optics, satellites, cable equipment, and other companies involved in supporting the flow of information. Stocks are selected principally on the basis of their capital appreciation potential as identified by the AMEX (the Intellidex Provider) pursuant to its Intellidex methodology. The Fund�� investment advisor is PowerShares Capital Management LLC.

The Fund will normally invest at least 80% of its total assets in common stocks of networking companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Networking Intellidex. The Networking Intellidex is adjusted quarterly, and the Fund, using an indexing investment approach, attempts to replicate the performance of the Networking Intellidex. The Fund generally will invest in all of the stocks comprising the Networking Intellidex in proportion to their weightings in the Networking Intellidex.

Advisors' Opinion:

• [By John Udovich]

  Just before Thanksgiving, small cap networking stock Infoblox Inc (NYSE: BLOX) sank 28.65% on guidance that was below expectations, but the stock has still outperformed the year-to-date�performance of�networking ETF like the PowerShares Dynamic Networking ETF (NYSEARCA: PXQ) and iShares S&P North American Networking ETF (NYSEARCA: IGN). So what went wrong and could investors have just overeacted?

Hot Railroad Companies To Invest In Right Now: IN Media Corp (IMDC)

IN Media Corporation, formerly Tres Estrellas Enterprises, Inc., incorporated on March 5, 2007, is a development-stage company. The Company focuses on providing integrated Internet protocol television (IPTV) services for platform providers for any device from large screen televisions to handheld mobile phones. It provides a combination of hardware, software, manufacturing and content services for platform providers to either complete their offerings or provide an all-in-one solution. On October 16, 2009, the Company executed an agreement between In-Media Corporation (In-Media) and the Company, subsequent to which In-Media was merged into the Company.

The Company�� partnerships with platform providers, such as Comcast, AT&T, DirecTV, provide an installed base of customers, as well as allowing platform providers to be the billing and service interface to customers. The Company is focusing on its first implementation in China through its Chinese distributor, which will include provision of set top boxes (STB)-related system support, reference platforms and technology, and access to over 4,000 titles of Hollywood and Bollywood movies.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks IN Media Corp (OTCMKTS: IMDC), Epazz Inc (OTCMKTS: EPAZ) and Polaris International Holdings (OTCMKTS: PIHN) have been busy developing new devices/products or making acquisitions. Moreover, at least two of these small cap stocks have been the subject of paid promotions or investor relations types of activities. Keeping that in mind, will new devices/products or acquisitions help these small caps along with their investors or traders? Here is a closer look:

Hot Railroad Companies To Invest In Right Now: NRG Yield Inc (NYLD)

NRG Yield, Inc., incorporated on December 20, 2012, serves as the primary vehicle, through which NRG Energy, Inc. will own, operate and acquire contracted renewable and conventional generation and thermal infrastructure assets. The Company owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States. The Company�� contracted generation portfolio includes three natural gas or dual-fired facilities, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities that collectively represent 1,324 net megawatt. The Company also own thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,098 net megawatt and electric generation capacity of 123 net megawatt. In December 2013, it acquired the assets of privately held Energy Systems Company.

The Company�� thermal infrastructure assets provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals and governmental units in ten locations, principally through long-term contracts or pursuant to rates regulated by state utility commissions. The Company�� conventional operations consist of 910 net megawatt of natural gas and dual-fired generation assets, Marsh Landing and GenConn, located in the West and Northeast regions of the United States, respectively. The Company�� seven utility-scale solar generation assets generate electricity through the use of photovoltaic panels, with each facility equal to or exceeding 20 megawatt and collectively totaling 303 net megawatt of capacity. These facilities are located in Arizona, California and New Mexico, all states with attractive solar resources. The Company�� distributed solar generation facilities, which it generally define as facilities of less than 20 megawatt in operating capacity, each generate electricity through the use of photovoltaic panels.

The Company�� wind! operations are consists of the 101 megawatt South Trent wind farm located near Sweetwater, Texas. It consists of 44 Siemens 2.3 megawatt wind turbines capable, at rated capacity, of powering approximately 80,000 homes. The Company�� thermal operations are consists of district energy systems and combined heat and power plants (Energy Centers) that utilize an energy-efficient, environmentally sound method of heating and cooling buildings. These Energy Centers produce steam, hot water and/or chilled water and in some instances, electricity at a central plant.

Advisors' Opinion:

• [By David Dittman]

  Question: Any comments on NRG Yield Inc (NYSE: NYLD), the IPO of NRG Energy from this year? Its looks set for strong dividend growth in the next couple years.

• [By Joshua Bondy]

  The Ivanpah project
  Recently the Ivanpah 392 megawatt (MW) CSP plant was competed in the Californian desert.�NRG Yield (NYSE: NYLD  ) and its parent company�NRG Energy (NYSE: NRG  ) �worked to bring the plant to fruition. The facility will help California reach its goal of 33% renewable energy production by 2020. Southern California Edison and Pacific Gas & Electric have already signed long-term agreements to buy power from the facility.�

• [By Richard Stavros]

  The launch of these investment vehicles has been a source of excitement in the power industry, particularly with NRG Energy Inc’s (NYSE: NRG) successful initial public offering (IPO) of NRG Yield Inc (NYSE: NYLD), the firm’s YieldCo. That’s prompted a number of utilities to announce similar plans. The question is whether these new securities offer enduring value, similar to what’s happened in the traditional MLP space, or whether they’re just another way for firms to raise cash by making a cynical play for yield-starved income investors.

• [By Lauren Pollock]

  NRG Yield Inc.(NYLD) agreed to purchase privately held Energy Systems Co. for $120 million in cash, which the company hopes will help it increase its dividend payments as well as its geographic diversity. Energy Systems is an Omaha, Neb.-based supplier of district energy.

Hot Railroad Companies To Invest In Right Now: Pioneer Exploration Inc (PIEX)

Pioneer Exploration Inc. (Pioneer) is an exploration-stage company. The Company is primarily engaged in the acquisition and exploration of mining properties.

As of August 31, 2012, the Company has not generated any revenue. As of August 31, 2012, the Company does not have any manufacturing facilities, operations, suppliers, products, or customers.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Metrospaces Inc (OTCMKTS: MSPC), LEEP INC (OTCMKTS: LPPI) and Pioneer Exploration Inc (OTCMKTS: PIEX) have been getting some attention lately due to either promotions or share trading activity. Unfortunately, there are still unanswered questions about these three ��ark horse��stocks which make it more difficult for investors and traders alike to evaluate. With that in mind, let�� try to shine the light on what we know about all three small caps:

Hot Railroad Companies To Invest In Right Now: Supertex Inc.(SUPX)

Supertex, Inc., together with its subsidiary, Supertex Limited, designs, develops, manufactures, and markets high voltage analog and mixed signal integrated circuits (IC) primarily in Asia, the United States, China, and Europe. The company offers high voltage analog multiplexer switches, pulsers, high-speed MOSFET drivers, and discrete high voltage MOSFETs and arrays for the medical electronics market. It also provides LED driver products, including linear regulators and switching regulators for general lighting in automotive, industrial, and consumer applications; and for backlighting in LCD TVs, monitors, and laptop screens. In addition, the company offers electroluminescent lamps for backlighting hand-held instruments, such as cell phone keypads, watches, monochrome flat screens, and MP3 players; and driver ICs for driving non-impact printers and plotters. Further, it provides high voltage amplifier ICs to drive optical micro-electro-mechanical systems (MEMS) for use in optical switching applications in the telecommunications market; high voltage electronic switch ICs for use in telephones; high voltage ICs for use as ring generators; and protection ICs for line cards. Additionally, the company offers ICs and DMOS devices primarily for various industrial applications. It markets and sells its products through direct sales personnel, independent sales representatives, and distributors primarily to original equipment manufacturers of electronic products. The company was founded in 1975 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Lauren Pollock]

  Among the companies with shares expected to actively trade in Monday’s session are AutoNavi Holdings Ltd.(AMAP), Dick's Sporting Goods Inc.(DKS) and Supertex Inc.(SUPX)

Ford's Mulally: 'No change' in retirement plan

Ford CEO Alan Mulally says he is not leaving yet.

"No change to the plan," Mulally said this morning on a conference call with investors and media when asked about reports he is preparing to retire before year's end to pursue other interests.

When Mark Fields was named to the new position of chief operating officer in 2012, Mulally said he would remain as CEO through the end of 2014, if not longer.

Last year that premise was tested when Mulally's name was repeatedly mentioned as a top candidate to become CEO of Microsoft. The speculation, which was proving distracting at Ford by year's end, prompted Mulally to end his coy remarks and state plainly his intention was to remain with Ford through 2014.

Indications have arisen anew that Mulally will pass the baton to Fields sooner rather than later and clarity on the timing could be forthcoming next month.

"We don't comment on speculation and have no change to the plan," Mulally said repeatedly today.

He said he and Executive Chairman Bill Ford seven years ago put a high priority on developing a robust leadership team and strong succession plan.

Hot Information Technology Stocks To Buy Right Now

Mulally made the comments on a call to discuss Ford first-quarter earnings. Ford reported a $989 million profit in the first quarter, down 39% from a year ago with some warranty charges and higher expenses as the automaker kicks off its most aggressive year of product launches in 50 years.

Small Cap Synacor Inc (SYNC): At Least the Slide Has Slowed (SKYY, IGV & SOCL)

Small cap Synacor Inc (NASDAQ: SYNC) says its "where Tech, Hollywood and Madison Avenue meet in the cloud" but its not exactly been a blockbuster for investors – meanings its worth taking a closer look at the stock along with the performance of potential benchmarks like the First Trust ISE Cloud Computing Index (NASDAQ: SKYY), iShares North American Tech-Software (NYSEARCA: IGV) and Global X Social Media Index ETF (NASDAQ: SOCL).

What is Synacor Inc?

Small cap Synacor Inc calls itself a "Tech company at the intersection of Hollywood and Madison Avenue" or "where Tech, Hollywood and Madison Avenue meet in the cloud." More specifically, Synacor Inc's white-label platform enables cable, satellite, telecom and consumer electronics companies to deliver TV Everywhere, digital entertainment, cloud-based services and apps to their end-consumers across multiple devices, strengthening those relationships while monetizing the engagement. The company says it's the leading provider of next-gen startpages, homescreens, award-winning TV Everywhere solutions and cloud-based Identity Management (IDM) services, across multiple devices for cable, satellite, telecom and consumer electronics companies in the US and abroad

As for potential performance benchmarks, the First Trust ISE Cloud Computing Index tracks the ISE Cloud Computing Index through 41 holdings; the iShares North American Tech-Software tracks the S&P North American Technology-Software Index through 61 holdings; and the Global X Social Media Index ETF tracks the Solactive Social Media Index through 21 holdings. 

What You Need to Know or Be Warned About Synacor Inc

Synacor Inc debuted in early 2012 at $5 (sharply below its original plans of debuting at $10 to $12 a share), but it appears that shares quickly got way ahead of themselves thanks to the activities of certain promoters or traders plus the company has long warned that a growing number of consumers are using mobile devices instead of computers and software applications other than Internet browsers to access the Internet – hurting its search-and-display advertising (the company has been developing solutions to address these trends). Shares have largely been flat at the $2.50 level since early 2013.

In early March, announced financial results for the fourth quarter and fiscal 2013 with fourth quarter revenue coming in at $29.4 million verses $32.2 million as search and display advertising revenue came in at $24.0 million verses $27.1 million while subscription-based revenue came in at $5.4 million verses $5.1 million. For fiscal 2013, total revenue came in at $111.8 million verses $122.0 million for fiscal 2012 as search and display advertising revenue came in at $90.4 million verses $101.6 million and subscription-based revenue came in at $21.4 million verses $20.4 million. For the fourth quarter of 2013, Synacor Inc's net income came in at $0.2 million verses net income of $0.8 million while for the full fiscal year, the company's net loss came in at $1.4 million verses net income of $3.8 million for 2012. The CEO commented:

"Throughout 2013 and most intensively in our fourth quarter, Synacor made significant progress developing new multi-device touchscreen and mobile products for use in domestic and international markets. We're particularly excited about our latest Android homescreen, TV Everywhere search & discovery interfaces, and authentication offerings. We plan to aggressively rollout these new products during the next two quarters of this year and we're encouraged by the early market reception."

For fiscal 2013, it should be mentioned that Synacor generated $5.2 million in cash from operating activities verses $14.7 million in fiscal 2012, but the company ended the year with $36.4 million in cash and cash equivalents verses $41.9 million at the end of fiscal 2012. In addition, the earnings report noted a CEO succession plan plus announced a stock repurchase program under which the company may repurchase up to $5 million of its outstanding common stock.

Aside from earnings, investors should be aware of a large number of insider sales in recent months that are documented on Yahoo! Finances Insider Transactions page for the stock:

Insider Transactions Reported - Last Two Years

DateInsiderSharesTypeTransactionValue*

Apr 17, 2014	CHAMOUN GEORGEOfficer	10,000	Direct	Option Exercise at $0.20 per share.	2,000
Apr 15, 2014	CHAMOUN GEORGEOfficer	5,000	Direct	Automatic Sale at $2.54 per share.	12,700
Apr 9, 2014	FRANKEL RONALD NOfficer	11,500	Direct	Automatic Sale at $2.50 per share.	28,750
Mar 27, 2014	FRANKEL RONALD NOfficer	11,500	Direct	Automatic Sale at $2.45 per share.	28,175
Mar 18, 2014	CHAMOUN GEORGEOfficer	10,000	Direct	Option Exercise at $0.20 per share.	2,000
Mar 17, 2014	CHAMOUN GEORGEOfficer	5,000	Direct	Automatic Sale at $2.57 per share.	12,850
Mar 13, 2014	FRANKEL RONALD NOfficer	11,500	Direct	Automatic Sale at $2.62 per share.	30,129
Mar 11, 2014	CHAMOUN GEORGEOfficer	20,000	Direct	Option Exercise at $0.20 per share.	4,000
Mar 10, 2014	CHAMOUN GEORGEOfficer	5,000	Direct	Automatic Sale at $2.59 per share.	12,950
Feb 12, 2014	FRANKEL RONALD NOfficer	11,500	Direct	Automatic Sale at $2.49 per share.	28,635
Jan 30, 2014	FRANKEL RONALD NOfficer	11,500	Direct	Automatic Sale at $2.42 per share.	27,830
Jan 15, 2014	CHAMOUN GEORGEOfficer	10,000	Direct	Option Exercise at $0.20 per share.	2,000
Jan 15, 2014	FRANKEL RONALD NOfficer	11,500	Direct	Automatic Sale at $2.60 per share.	29,899
Jan 15, 2014	CHAMOUN GEORGEOfficer	5,000	Direct	Automatic Sale at $2.60 per share.	13,000
Jan 2, 2014	FRANKEL RONALD NOfficer	11,500	Direct	Automatic Sale at $2.48 per share.	28,520

 

Otherwise, it should be noted that Synacor Inc will hold a conference call to discuss financial results for its first quarter 2014 on Tuesday, May 13, at 5pm Eastern Time.

Share Performance: Synacor Inc vs. SKYY, IGV & SOCL    

On Tuesday, small cap Synacor Inc fell 0.79% to $2.51 (SYNC has a 52 week trading range of $2.13 to $4.17 a share) for a market cap of $68.95 million plus the stock is up 2.45% since the start of the year, down 12.5% over the past year and down 52.2% since February 2012. Here is a look at the long term performance of Synacor Inc verses potential ETF benchmarks First Trust ISE Cloud Computing Index, iShares North American Tech-Software and Global X Social Media Index ETF:

As you can see from the above chart, Synacor Inc peaked in the middle of 2012 when it began sliding but that slide largely dissipated several months ago.

Finally, here is a look at the latest technical charts for Synacor Inc, First Trust ISE Cloud Computing Index, iShares North American Tech-Software and Global X Social Media Index ETF:

The Bottom Line. While small cap Synacor Inc is definitely not for conservative investors, traders and anyone with a stomach for some risk might want to take a closer look at the stock.

Pharmacyclics, Johnson & Johnson File for Marketing Approval for Ibrutinib

Pharmacyclics (NASDAQ: PCYC  ) and development partner Janssen, a division of Johnson & Johnson (NYSE: JNJ  ) , announced on Wednesday that a New Drug Application, or NDA, has been submitted for ibrutinib. The NDA filed with the U.S. Food and Drug Administration requests marketing approval for the drug in the treatment of chronic lymphocytic leukemia/small lymphocytic lymphoma and in the treatment of previously treated patients with mantle cell lymphoma.

Ibrutinib is an oral inhibitor of Bruton's tyrosine kinase, or BTK, an enzyme found in blood cells. Studies have found that inhibition of BTK can help kill malignant white blood cells known as B-cells. If approved, Ibrutinib would be the first oral BTK inhibitor to reach the market in the United States.

Two phase 2 studies have been completed for ibrutinib. Normally, drugs submitted to the FDA for approval must complete three clinical development phases. However, ibrutinib received Breakthrough Therapy Designation for the indications for which marketing approval has been requested, plus another indication, Waldenstrom's macroglobulinemia. This status enables pharmaceutical companies to go through a more accelerated process for the review of drugs that target treatment of serious or life-threatening conditions.

Pharmacyclics and Johnson & Johnson formed a partnership for the development of ibrutinib in December 2011. Under the terms of the agreement, the two companies split development costs, with Pharmacyclics covering 40% of costs and J&J's Janssen unit covering 60%. The companies plan to share any profits for the drug on a 50/50 basis.

Around 113,000 patients in the U.S. have chronic lymphocytic leukemia. More than 15,000 new patients are diagnosed with the disease every year. There are around 5,000 new diagnoses of mantle cell lymphoma in the U.S. annually.

If ultimately approved, ibrutinib could prove to be very successful for Pharmacyclics and J&J. Piper Jaffray estimates that the drug could hit annual sales of more than $4 billion for just the chronic lymphocytic leukemia indication.

Potential blockbuster drugs can drive up the shares of pharmaceutical companies like Pharmacyclics in a major way. These quick gains can be tempting for investors. The best overall investing approach, though, is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Royce Funds Commentary - Why Should Investors Look at European Small-Caps?

Top US Companies To Buy Right Now

At Royce we concentrate on individual companies, and our search for quality knows no borders. Portfolio Manager and Director of International Research David Nadel talks about how our approach applies to European small-cap stocks.

View the video here.

"European small-caps really performed well in 2013, particularly in the second half, and I think this was largely sort of a game of catch up. The daily sort of relentless doomsday scenario headlines have finally faded. I think people feel it's safe to come back and invest in Europe.

We've always viewed the opportunity in Europe I think a little differently than some have. First of all, investors should not view Europe as a monolith. It is certainly comparable to the U.S. in terms of aggregate GDP, it's comparable in terms of aggregate population, but the similarities end there."

"You're talking about an economic zone that is comprised of a very divergent set of countries, each with a separate set of laws, many different languages, different customs, etc. So there are big differences.

We at Royce focus on high-quality companies. Often that means companies with strong balance sheets."

"In Europe you have a bit of a balance sheet divide between the countries that are north of the Alps and the countries that are south of the Alps. It's perhaps slightly simplistic to look at it this way, but by in large it holds that countries north of the Alps have stronger balance sheets, they tend to pay their bills quicker, and you get the opposite effects south of the Alps. So, we have traditionally had a more concentrated set of investments in Europe north of the Alps.

Last year we visited Italy, which was then viewed as the sick man of Europe. The Italian investments worked out quite well in 2013."

"This year we're focused a bit more on France. France is a market which is widely perceived negatively today. Certainly they have very persistent unemployment, they have a famously rigid labor market, and they have not balanced their budget since the mid-70s. French profit margins are at a 25-year low. That generally doesn't go in one direction forever. We are certainly bullish on a number of companies in France.

Ultimately we're investing in companies, not countries—so for us it's really more important how good these businesses are fundamentally. But it helps when the public perception or when the consensus view is so negative in a market like France because you're getting the stocks cheaper."

Important Disclosure Information

The thoughts and opinions expressed in the video are solely those of the person speaking and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

This material is not authorized for distribution unless preceded or accompanied by a currentprospectus. Please read the prospectus carefully before investing or sending money. Investments in securities of small-cap companies may involve considerably more risk than investments in securities of larger-cap companies. (Please see "Primary Risks for Fund Investors" in the prospectus.) Investments in foreign companies may be subject to different risks than investments in securities of U.S. companies, including adverse political, social, economic, or other developments that are unique to a particular country or region. (Please see "Investing in Foreign Securities" in the prospectus.)

Also check out: Chuck Royce Undervalued Stocks Chuck Royce Top Growth Companies Chuck Royce High Yield stocks, and Stocks that Chuck Royce keeps buying
About the author:Holly LaFonWilliam J. DeRosa, Jr. is the General Partner of Anthem Asset Management, LLC is an independent investment management company. He has also served as Director of Equity Research and Senior Portfolio Manager at various buy-side asset management firms. Mr. DeRosa is a Chartered Financial Analyst and is a member of The CFA Institute.

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Factory Inventories Hit Record Highs (Again)

New orders for manufactured goods increased 2.1% to $485 billion in May, according to a Commerce Department report (link opens as PDF) released today.

After bumping up a revised 1.3% for April, these newest numbers managed to just beat analyst expectations of a 2% increase.

Source: Commerce Department. 

As a potential sign of some faith in the economic recovery, new orders for manufactured durable goods increased 3.7% to $231.2 billion. But although overall numbers are positive, orders continue to be primarily propped up by major gains in the transportation sector.

5 Best Quality Stocks To Own Right Now

Transportation equipment recorded a 10.9% increase for May (mostly due to commercial aircraft orders), and sales are up three of the last four months. Excluding this sector from the report, new orders clock in with a more subtle 0.6% gain.

Shipments recorded a 1% increase after declining 0.7% in April, while unfilled orders topped the $1 trillion mark on a 0.8% increase.

Inventories pushed higher for the sixth straight month, reaching a new record since 1992, when data was first collected in this format. Even so, May's increase in shipments offset inventories growth, easing the inventories-to-shipment ratio down to 1.30 from April's 1.31 reading.

link

SkyWest Declares 72nd Consecutive Quarterly Dividend

Passenger airline operator SkyWest (NASDAQ: SKYW  ) announced today its third-quarter dividend of $0.04 per share, the same rate it's paid since 2008.

The board of directors said the quarterly dividend is payable on July 5 to the holders of record at the close of business on June 28. The payout by the airline operator, which owns SkyWest Airlines and ExpressJet Airlines, will be its 72nd consecutive quarterly dividend payment.

SkyWest Airlines operates as United Express, Delta Connection, and American Eagle under contractual agreements with United Continental's United Airlines, Delta Airlines, and AMR's American Airlines. It also has contractual agreements with US Airways and Alaska Air.

The regular dividend payment equates to a $0.16-per-share annual dividend, yielding 1.1% based on the closing price of SkyWest's stock on June 14.

SKYW Dividend data by YCharts.

link

Poor Time Management Is Costing Advisors: FPA Study

Less than half of advisors say they feel somewhat or completely in control of their time and their business, according to a study released Thursday by the Financial Planning Association. That’s too bad, because better time management can get an advisor about 50 extra client meetings a year, according to the report.

The biggest obstacle to increasing productivity was trying to do too much, although 30% of study participants owned up to procrastinating. Thirty-one percent said increased administrative burdens were hindering their productivity.

FPA surveyed about 750 advisors in February for the report. This is the first time FPA has conducted the study. It was done in collaboration with Julie Littlechild of Advisor Impact.

“Our inaugural study was key in honing in on those primary gaps where advisors, including CFP professionals, felt they could perform at a higher level, comprising time management, client communications, business development and team training,” Lauren Schadle, FPA executive director and CEO, said in a statement.

The report identified three ways advisors could get their time management under control. The first, and probably most obvious, is having a clear strategic focus. The survey found advisors who had taken the time to establish clear business and personal goals were more likely to feel like they were in control.

An effective infrastructure is important, too. More than half of advisors said having clearly defined processes was the best way to improve efficiency. Thirty-eight percent said better scheduling was the best solution.

In-control advisors also focus on personal efficiency. The report found 44% of in-control advisors follow a set schedule, compared with 20% of those who don’t feel in control.

The survey asked advisors to describe their typical work week. More than a third are working 50 or more hours per week. Altogether, nearly three-quarters are working more than a 40-hour week. A significant majority said they work at least one evening per week, and 40% said they work three or more. More than half occasionally or regularly work on the weekend.

Women and advisors at larger firms were significantly more likely to work extended hours. More than half of advisors at firms that manage more than $500 million in client assets said they work at least 50 hours per week, compared with 31% at smaller firms. Forty-three percent of women said the same, compared with 29% of men.

Whether a solo practitioner or a team of an advisor and at least one staffer, 47% said they were in either somewhat or complete control of their own time. When asked about how in control they are of their business generally, 45% of solo practitioners reported high levels of control, compared with 51% of teams.

FPA also identified a hierarchy of responsibilities. Holding meetings with clients, prospects and centers of influence was almost never delegated to another member of the team. Business planning and motivating the team were occasionally handled by someone other than the advisor, but almost 90% said they typically do those tasks themselves.

Advisors were willing to relinquish a little more control of growth-oriented tasks. More than 20% said they typically delegate creating new financial plans, calling clients about suggested or routine changes to the plan, or meeting with product providers. Twelve percent of advisors said they typically assign someone else to identify new prospects, but 10% said they would if they had the resources.

Just over half of advisors said they typically undertake research-related tasks like gathering data from new clients, ongoing product due diligence, updating financial plans and client-specific research. Approximately a third delegate those tasks.

Forty-five percent of advisors said they manage the team’s workflow, but 14% said they would like to delegate that task, they just don’t have the resources.

Advisors were least likely to undertake business processing-related tasks themselves. Twelve percent said they currently do things like executing communications plans, setting meetings and preparing documents, and handling routine questions from clients, but they would like to hand those duties off to someone else.

The most common barriers to those advisors who would like to delegate certain duties to another staff member are not having the right people, training gaps, or clients who are not comfortable working with other team members.

Google shares plunge after results miss estimates

Google is involved in plenty of high-tech ventures, from Google Glass to its broadband-on-steroids fiber network.

But its core business — online advertising — can drive revenue up 19%, as it did in the first quarter of 2014, and still disappoint Wall Street.

The world's largest Internet search provider reported first-quarter revenue Wednesday of $15.4 billion, up from $12.95 billion in the first quarter of 2013. Profit came in at $6.27 per share, compared with $6.00 a share in the same period last year. Google was expected to make a profit of $6.40.

Google stock plummeted nearly 6% after the market closed, dropping to $524.33. In regular trading Wednesday, Google shares had gained 3.8% to $556.54, ahead of the results.

Many companies would be satisfied with such a revenue increase, but for Google "it's an average quarter from a great company," says Colin Gillis, an analyst at BGC Partners, which has a "hold" on the stock.

The first-quarter results make sense, he says, because the company's ad revenue is typically seasonal, he says. "It doesn't do as well in the first half of the year as the second half year, just because people are looking for holiday stuff and back-to-school shopping" and might click on ads as they use Google's search engine, he says.

Paid clicks, a measure of the number of times ads from Google websites and other sites were clicked on during the period, rose 26%. However, the cost per click, or CPC, which measures the revenue generated when ads are clicked on, fell about 9%.

Neither results were as good as expected, Gillis says. "Paid clicks were a little less than people were looking for, and the losses (in CPCs) were a little greater," he says. "If you have people paying less for your product, your clicks, as has happened now for about 10 quarters in a row, that's not a healthy trend."

Like other companies, Google is facing challenges in converting mobile advertising into revenue, he says. "A lot of businesses got disrupted by peop! le using smartphones instead of desktops, and Google is one of them."

Google's investments in other ventures — including cloud computing, wearables and expansion of Google Fiber — also point to potential down the road, says Colin Sebastian, an analyst with R.W. Baird & Co. "Google invests early and innovates early," says Sebastian, whose firm has an "outperform" ranking on the stock.

On Tuesday, the company did a one-day sale of its Google Glass Explorer edition, and the $1,500 wearable computing glasses sold "really fast," the company said. That same day, the company purchased drone maker Titan Aerospace.

Sebastian calls the first-quarter performance "a very slight miss. Google does not provide guidance, so there is typically quite a bit of volatility on their earnings reports."

Eventually mobile will become more profitable and more important in ad revenue, said Google senior vice president and chief business officer Nikesh Arora on a conference call with analysts after the market close.

Mobile ads will become more valuable because they can be location-based and contextual, something that will make it more likely a shopper will make a purchase based on an ad. "A whole bunch of building blocks have to come into play ... for that gap to close," he said. "That journey is just beginning on the mobile side."

AvWorks Aviation - aka Vapor Group - Is Pumped and Primed (SPLI)

It's admittedly scary to try and catch a falling knife, but sometimes it's worth the risk. Case in point? AvWorks Aviation Corp. (OTCMKTS:SPLI) .... better known as Vapor Group. Without knowing more about the stock, the sheer fact that SPLI has fallen nearly 90% since March 26th - with about a third of that coming today alone - the stock would be best left avoided by nearly any trader. For the small group of savvy traders that know the tell-tale signs and know how the market really works, however, AvWorks Aviation, or Vapor Group, may be in a prime buying situation today.... yes, even in the midst of this bloodbath.

For those only vaguely familiar with it, SPLI is an electronic cigarette maker. For those intimately familiar with the company though, they'll know it better as something of a fringe marijuana play. The company manufactures e-cigarette vaporizers and e-liquids in a wide variety of flavors. It also makes what it calls a "Vapor Box TBH" that can vaporize, among other things, dry herbs. The connection to the marijuana trade isn't an official one for Vapor Group - still officially AvWorks Aviation - but the tie-in is clear.

Of course, anyone who's been following the marijuana industry's stocks also knows they've been all over the map, controlled by traders and emotions more than based on value or prospects. And, SPLI hasn't exactly been immune to that insanity, rallying more than 2000% between early February and late March when the company's TBH product was recognized as a way to inhale a herb-based, well, possibly anything.

That insanity worked the other way too, driving the stock all the way from a peak of $0.45 to the current price of $0.05 per share of AvWorks Aviation... almost a complete erasure of the runup. However, today's drubbing to new multi-week lows also looks like it's the final blow - the move that flushes out the last of the sellers and only leaves the buyers behind, starting a rebound rally that could be just as big as the February/March runup.

How do we know Tuesday is the pivot? One of the clues is the sheer size and speed of the selloff. The other (and perhaps more important) clue that Vapor Group/AvWorks Aviation shares are ready to rebound is the fact that today's volume is wildly high. Most pivots occur on volume spikes at the end of long runs, and that's exactly what we have here with SPLI.

With all of that being said, it's critical to bear in mind that this is still just a short-term call on AvWorks Aviation, or Vapor Group, or whatever you want to call it. There's still a lot of uncertainty surrounding the company's long-term potential. For the foreseeable future, however, as of today SPLI is a falling knife worth trying to catch.

By the way, if you're wondering why Vapor Group is still technically called AvWorks Aviation, it was the result of a reverse merger that transpired last quarter. As of the next quarter, the name change should be in effect.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

T-Mobile drops overage fees, asks rivals to follow

John Legere knows how to get under rivals' skin.

Last Wednesday, T-Mobile's loquacious CEO announced a new $40 entry-level monthly pricing plan aimed at "value" customers. The renegade wireless company followed up a day later with an offering of LTE tablets, including iPads, at the Wi-Fi-only price. T-Mobile also said that existing postpaid voice customers who buy the tablets could add nearly 1.2 GB of data per month for free until the end of 2014.

The latest initiative comes with Legere's announcement Monday that starting in May, T-Mobile will abolish domestic overage fees for all its customers for good, while urging rivals AT&T, Sprint and Verizon Wireless to do the same.

To get that message across, Legere started an online "Abolish Overages" petition at Change.org. "Charging overage fees is a greedy, predatory practice that needs to go," he says. "It's going to be a ball to not only make this statement to our customers, but to watch millions of Americans just flip the bird on the insanity."

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According to T-Mobile, more than 20 million Americans were hit with punitive overage charges in 2013, with penalties from the three largest U.S. carriers totaling more than $1 billion annually. In a phone interview, Legere said that "there are 20 million people who in 2013 yelled 'holy (bleep)' at one point when they got their bill." He says the gross margins carriers charge on overages are almost 100%.

T-Mobile had already eliminated overage fees on the plans it unveiled last year as part of its "Uncarrier" strategy that does away with service contracts. But customers who were on older T-Mobile plans were still paying the fees. Now those customers will be automatically converted to an unlimited plan for voice and texts. On the data side, customers who exceed their limits will be downgraded to a slower speed.

Legere has no! intention of toning down his rhetoric. He is, after all, getting a lot of attention not only for himself but more importantly for T-Mobile. The company added 1.6 million net customers in the fourth quarter of 2013, and 4.4 million for the full year. "I'm not going to be designated U.S. ambassador to any foreign nation soon because of my diplomatic skills," he jokes. "The consumers, the employees, the people that I represent don't see what I'm saying as over-the-top. They feel it to be the clearest straight communication they've ever had and they can't figure out why others don't play that way. "

AT&T spokesman Mark Siegel had "no comment" on T-Mobiles latest moves. Sprint points to its wireless plans with unlimited data, talk and text with no overage fees that start at $45. Verizon Wireless declined to comment.

On another topic, Legere reported that sales of the two high profile phones that went on sale at T-Mobile (and elsewhere) Friday, Samsung's Galaxy S5 and the HTC One (M8), have both been, "very strong across the board."

E-mail: ebaig@usatoday.com; Follow @edbaig on Twitter.

Amazon Beats Google to the Fan-Fiction Punch

Amazon (NASDAQ: AMZN  ) introduced Kindle Worlds last week, teaming up with Time Warner (NYSE: TWX  ) to allow fans of Gossip Girl, Vampire Diaries, and Pretty Little Diaries to cash in on fan fiction by publishing their works through the leading online retailer's digital bookstore.

Google (NASDAQ: GOOG  ) has often been the haven of cottage industries in cyberspace, arming webmasters with the ability to seamlessly serve up contextual ads through AdSense and giving video makers revenue-sharing deals through Google's YouTube Partners program. However, Amazon's been the one taking the lead with aspiring writers, and now it's the first to cash in on licensing fan fiction.

In this video, longtime Fool contributor Rick Munarriz explains why a little fan fiction can go a long way for Amazon.

Tech's next chapter is going to be a battle
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Dow Burdened by Uncertainty and Low-Powered Tech

Without much new economic news today, the uncertainty over the FOMC's plan for the continuation of its monetary policy is still wreaking havoc on the Dow Jones Industrial Average (DJINDICES: ^DJI  ) this morning. Down 55 points as of 11 a.m. EDT, the index is struggling to gain some forward momentum as investors weigh the evidence from Fed Chairman Ben Bernanke and others about what the committee will do in the coming days, weeks, or months.

Change in policy
The standing commentary from Bernanke and others in the FOMC is that if the economy shows signs of continued improvement, then the committee will start paring back its current rate of bond repurchases -- the mechanism it has been using to effect the quantitative easing. Since the stock market has benefited from the current policy, this of course is causing a great stir among investors worried that the markets will start to slide once the committee makes a change.

One of the biggest signs the FOMC is looking for is a positive trend in the labor market. And with yesterday's jobless claims report showing another decline in new unemployment claims, investors feared that may have been the sign. So instead of the positive reaction investors have given previous positive jobless reports, yesterday's caused some unsettling within the market.

Today's news
The one piece of economic news we have today is an increase in durable goods. The Commerce Department reported a 3.3% increase in orders for long-lasting manufactured goods, which signals that the contraction in the factory sector may have run its course.

Inside the Dow
As of this writing, Cisco (NASDAQ: CSCO  ) is the lone tech component stock in positive territory for the index. And with a meager 0.08% gain, that could change very quickly. The tech company is likely enjoying the positive feedback from its recently completed acquisition of Ubiquisys, a U.K.-based firm that develops 3G and long-term evolution (LTE) small-cell technologies, allowing service providers connectivity along mobile networks.

After a heady run yesterday following its better-than-expected earnings report, Hewlett-Packard (NYSE: HPQ  ) is leading the tech sector lower, with a 1.65% loss. The tech manufacturer gained 17% yesterday, but investors may now be taking a closer look at the company's results after the initial excitement wears off. The company's most important (and largest) segment, personal systems, was off by 20% in revenue compared to the prior year. Even though HP has developed some well-received new devices, it's still losing ground.

Intel (NASDAQ: INTC  ) is right behind HP, with a 1.62% drop as of this writing. Intel may be on the receiving end of the negative backlash against HP, since the device maker's recently introduced new line of laptops uses Intel processors. Otherwise, the chip maker has been getting a variety of positive news. Its battle with ARM Holding (NASDAQ: ARMH  ) is looking like it might finally swing in Intel's favor, as ARM's stranglehold on the mobile and tablet markets may finally be loosening. Intel is providing the processors and chips for a variety of new devices that will push it further into the market, eating away at ARM's dominance.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer-term if it doesn't find new avenues for growth. In this premium research report on Intel, a Motley Fool analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

Biotech: Like Lambs to the Slaughter

After rallying yesterday, biotech stocks are getting pounded, as Gilead (GILD), Amgen (AMGN) and Celgene (CELG) slide today.

The iShares Nasdaq Biotech ETF (IBB) fell 5.6% to $221.89 today, while the SPDR S&P Biotechnology ETF (XBI) dropped 6.5% to $129.79. Gilead Sciences fell 7.3% to $65.48, Amgen declined 4.9% to $114.11 and Celgene finished down 5% at $139.98.

What’s causing the slide? Nothing fundamental. Sure, the market’s worried about how much Gilead Sciences will be allowed to charge for Solvadi but there’s nothing screaming sell now beyond market sentiment.

Matarin Capital considers the roll of sentiment in the biotech selloff:

While the biotechnology stocks came into March like a lion, they went out like a lamb. They were extremely weak during the last few weeks of the month, when sentiment worsened as Federal Reserve Chairwoman Yellen shifted the criteria for future rate hikes. (High expectation stocks are more prone to suffer with rising interest rates, because of the sensitivity of the valuation of their future cashflows to the level of the discount rate. In this sense they are very similar to zero coupon bonds.) Another hit to biotech investor sentiment came when questions were raised in the U.S. Congress about the pricing of industry leader Gilead's newest drug at $1,000/pill. The reason for the shift in sentiment may, at the end of the day, be of little matter. Once sentiment shifted, selling brought more selling. As is often the case with momentum stocks, an investor wants to ride the wave of momentum until it comes crashing down, and then head for shore… quickly.

Credit Suisse analyst Ravi Mehrotra and team predict think they’ll find a bottom soon. The reason:  Valuation. The S&P 500 trades at 16.5 times forward earnings, according to Morning star, while Gilead trades at 11.4 times, Amgen trades at 12.9 times and Celgene trades at 15 times.

Clearly, predicting the exact timing and magnitude of the bottom for any stock/sector is a near-impossible exercise, but bottom-line (get the pun?), we reiterate our view that large-cap biotech is unlikely to trade at a discount to the S&P500 for a sustained period of time given the quality and magnitude of growth of the Biotech sector. (Rather, it should be trading at a significant premium given the higher EPS growth rates – ~4x S&P500 EPS growth.)

The only problem: Right now, nobody cares.

Icahn Settles With EBay Board

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NEW YORK (The Deal) -- Carl Icahn on Thursday backed away from his proxy battle with eBay (EBAY), dropping his proposal that the company split off its PayPal unit and withdrawing two nominees from the company's board.

The two sides in a statement said that eBay has agreed to Icahn's suggestion to appoint one-time AT&T  (T) CEO David Dorman to its board. Dorman, a founding partner of Centerview Capital Technology and chairman of CVS Caremark Corp  (CVS), worked with Icahn as lead independent director at Motorola Solutions (MSI).

EBay CEO John Donahoe, a target of stinging criticisms from Icahn in recent months, in a statement said, "we are very pleased to have reached this agreement" and return focus to running the company.

"As a result of our conversations, it became clear that Carl and I strongly agree on the potential of PayPal and our company," Donahoe said. "I respect Carl's willingness to work together to drive sustainable shareholder value today and into the future. His record shows that he has done this with many other companies in the past." Icahn, owner of about 2% of the company's shares, in January called for eBay to split off PayPal, and in a series of letters accused eBay directors Marc L. Andreessen and Scott Cook of conflicts. The activist said that corporate governance at eBay was among the worst he had seen and that Donahoe was not up to the task of being CEO of the company. EBay and its directors responded by pointing out examples of potential Icahn conflicts, and arguing that eBay is better served by keeping PayPal in-house. Icahn seemingly has had a difficult time gaining traction with shareholders, in March calling on eBay to sell 20% of PayPal to the public instead of doing a full spinoff. The activist, who as part of the deal announced Thursday signed a confidentiality agreement covering any nonpublic information eBay officials share with him, said he has been engaged in conversations with Donahoe in recent weeks and plans to continue talks about eBay's future. "We both strongly believe in the great potential of eBay and PayPal, and I have found a number of his ideas to be extremely compelling," Icahn said. "However, I continue to believe that eBay would benefit from the separation of PayPal at some point in the near future and intend to continue to press my case through confidential discussions with the company."

Stock quotes in this article: EBAY, T, CVS, MSI 

Alcoa Inc (AA) Q1 Earnings Preview: Guidance Better than Results?

Alcoa Inc (NYSE:AA) will "officially" start the first quarter earnings season when they hold a conference call on Tuesday, April 8 beginning at 5:00 p.m. EDT to discuss first quarter 2014 results and business developments. The conference call will be webcast live via Alcoa's website, with presentation materials available online.

Wall Street anticipates that the aluminum maker will earn $0.05 per share for the quarter, which is $0.06 less than last year's profit of $0.11 per share. iStock expects AA  to top Wall Street's consensus number. The iEstimate is $0.06, a bullish surprise of a penny.

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Sales, like earnings, are expected to fall, slipping 4.2% year-over-year. Alcoa's consensus revenue estimate for Q1 is $5.59 billion, down from last year's $5.83 billion.

Alcoa is engaged in lightweight metals, products and solutions. The Company offers its technology and expertise in automotive and aerospace transportation, building and construction, consumer electronics and packaging, defense applications across air, land and sea, and the oil and gas industry. The Company is also a producer of primary aluminum, as well as a miner of bauxite and refiner of alumina. The Company's segments include Alumina, Primary Metals, Global Rolled Products and Engineered Products and Solutions.

In what is usually a bullish sign for the upcoming quarterly review, six analysts raised their outlooks for Q1 in the last month and three of them in the last week.

[Related -Alcoa Inc (NYSE:AA) Q4 Earnings Preview: What To Expect?]

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AA business is dependent on airplanes, and automobiles; cars in particular have rebounded after the thaw from the polar vortex. Construction is another beneficiary of better weather. Perhaps, that's why a half-dozen analysts lifted their views recently.

Aluminum's price is another getting a price hike, at least lately. After a yearlong decline,  the metal is at a 2014 high on concerns there isn't enough aluminum to meet demand. For the first time in a while, aluminum's price is above its 200-day moving average, which is considered bullish long-term.

Analyst, Bart Melek of TD Securities in Toronto told Bloomberg, "The supply situation is definitely pushing prices higher." But the recent spike is more of a benefit for the second quarter than the first, in our opinion; although the price climb did start late in Q1, which is probably why analysts are more optimistic lately.

When dealing with refinishing commodities, costs are the key to margins. Keeping expenses in-line with sales increases/decreases tend to make the difference between good and bad quarters.

In 2013, total costs rose 6.3% while revenue slipped 2.82%. Wall Street will be interested in hearing how Alcoa management plans of reversing that trend in 2014. While the income statement tells of necessary cost cutting, the balance sheet looks better as management is controlling inventory and clients appear to be paying on-time, which is usually a sign of a healthy market.

Overall: The iEstimate suggests a small bullish surprise for Alcoa Inc (NYSE:AA), but we expect guidance to play a bigger role than earnings Tuesday afternoon. With demand outstripping supply, making prices rise, if management can reduce costs, AA's outlook could prove positive. 

MOO: How to Play Agriculture

One area that particularly intrigues us is agriculture; longer-term, it is harder to find a group of companies better positioned to benefit from the rise in underdeveloped economies, suggests Stephen Leeb in The Cash Cow.

Many, if not most, middle- and low-income economies today rely on the developed world for, at least, some of their food supply. Over the past half century, while famines have markedly declined, food self-sufficiency has hardly budged.

As the global population continues to increase—especially in the countries that have the most meager food supplies—the demand for food will continue to grow.

The long-term trend of increased food production and, all investments related to food production, is very much intact. This means any large sell-off in food related stocks should be treated as a great buying opportunity.

The ETF that best represents agricultural investments is Market Vectors Agribusiness (MOO).

The two largest holdings in the MOO portfolio are Monsanto (MON) and Swiss-based Syngenta (SYT). Both of these companies are leaders in the biotech aspect of agriculture and produce pesticides as well as pesticide-resistant seeds.

Together they account for about 16% of the ETF. Meanwhile, the largest food-related segment in the ETF portfolio is fertilizers, at about 22%.

Farm equipment companies, such as Deere (DE), which is a personal favorite of ours, given that it is one of the world's highly innovative companies in a critical sector, accounts for about 18% of the ETF.

The remaining 40%, or so, is spread widely among landholders, food merchandisers, and livestock producers.

An added kicker is that MOO is one of the surest beneficiaries of climate change. Though the jury remains out on the extent of climate change there is no doubt that changing weather patterns will mean different growing patterns and shifting fertility among land masses.

These changes will result in temporary food shortages—a bane for the world's population, but a boon for investors in agriculture.

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